Alternative energy in the port of Hamburg: Linde and the Hamburg Port Authority are banking on liquefied natural gas

Trade News

Munich/Hamburg, 10 February 2012 – The technology company The Linde Group and the Hamburg Port Authority (HPA) have agreed to advance the use of liquefied natural gas (LNG) - an environmentally-friendly fuel – in the port of Hamburg. A memorandum of understanding to that effect was signed in Hamburg today. The aim is to prepare a comprehensive feasibility study to assess if the use of LNG in the port of Hamburg is economically viable. First results are expected by mid 2012.

The two organisations want to promote LNG as an alternative fuel for ships and other applications, such as trucks. On the basis of the findings of the study, concrete infrastructure projects such as, for example, the construction of an LNG terminal in the port of Hamburg can be initiated.

"Sustainability has become a crucial factor in any industry sector. Linde has not only recognised these signs, but the company is also prepared to assume responsibility. Hamburg will certainly benefit from such expertise in the long term," says Hamburg's minister for economic and labour affairs, Frank Horch.

Jens Meier, chairman of the HPA's management board, explained the moti-vation to tackle the project: "We want to encourage the port industry and technology enterprises in the port of Hamburg to co-operate more closely. Our aim is to develop sustainable long-term solutions that take account of the economic framework conditions and place more emphasis on green technologies at the same time."

LNG as an eco-friendly fuel is particularly suitable to support that aim: "Emissions from burning natural gas are substantially lower than those caused by diesel or heavy-fuel oils. In view of the stricter environmental standards, there is a continuously rising demand for LNG solutions in the transport industry," said Dr Andreas Opfermann, Head of Clean Energy and Innovation Management at The Linde Group. Linde has many years of ex-perience when it comes to LNG as a fuel. As early as 1999 Cryo AB, a sub-sidiary of Linde, supplied the world's first LNG-powered ferry, including the necessary storage systems. Until today, Cryo AB has equipped almost 40 ships in Scandinavia. The LNG supply is ensured through LNG production plants and terminals operated by Linde.

Low-emission fuel Compared to engines running on diesel, natural gas emit roughly 90 per cent less nitrogen oxides and up to 20 per cent fewer carbon dioxide. Sulphur dioxide and particulate matter emissions are almost completely eliminated, which is in conformity with the stricter sulphur emission limit values (Sulphur Emission Control Area – SECA) applicable from 2015. On top, LNG-based fuels reduce engine wear and thus lower operating costs.

In addition to today's memorandum of understanding, Germanischer Lloyd is currently conducting two studies on LNG, in which the HPA is also involved. Apart from the legal framework conditions, the technical requirements LNG terminals have to meet play a pivotal role. The co-operation agreement con-cluded between Linde and the HPA today ensures that the economic frame-work conditions and the operation of such facilities will be considered in future planning.

About The Linde Group The Linde Group is a world-leading gases and engineering company with around 50,000 employees working in more than 100 countries worldwide. In the 2010 financial year, it achieved sales of EUR 12.868 bn. The strategy of The Linde Group is geared towards sus-tainable earnings-based growth and focuses on the expansion of its international business with forward-looking products and services. Linde acts responsibly towards its shareholders, business partners, employees, society and the environment – in every one of its business areas, regions and locations across the globe. Linde is committed to technologies and products that unite the goals of customer value and sustainable development.

Hamburg Port Authority The Hamburg Port Authority has been providing future-orientated port-management services offering one face to the customer since 2005. As an institution under public law, the HPA is in charge of implementing infrastructure projects in the port in an efficient, resource-friendly and sustainable way. The HPA is the contact point for all kinds of questions concerning waterside and landside infrastructure, the navigational safety of vessel traffic, port railway facilities, port property management and the economic conditions within the port area. The HPA ensures the provision of land as required, performs all sovereign duties and provides port industry services.